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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M. S. Sonak, Jitendra Jain, JJ.
Laxminath Investment & Management Consultants Pvt. Ltd. – Appellant
Versus
Principal Commissioner Of Income Tax-4 & Ors. – Respondent
JUDGMENT
M. S. Sonak, J.
1. Heard learned counsel for the parties.
2. This petition challenges the order dated 22 February 2023, made under Section 127 (2) of the Income Tax Act, 1961, transferring the petitioner’s case from the jurisdictional officer in Mumbai to the counterpart in New Delhi.
3. Mr. Shah, learned counsel for the petitioner, urges two contentions supporting this petition. Firstly, he submitted that the impugned order is bereft of reasons. He pointed out that the requirement to give reason, apart from one of the essential facets of principles of natural justice, is a statutory requirement under Section 127 (2) (a) of the Income Tax Act,1961. In the absence of reasons, he submitted, the impugned order calls for interference.
4. Secondly, Mr. Gandhi submitted that there was no agreement between the Principal Commissioners of Mumbai and Delhi for the proposal of such a transfer. Again, he submitted that such agreement is a sine qua non for exercising powers under Section 127 (2) of the Income Tax Act and in the absence of such agreement, the impugned order becomes vulnerable.
5. Mr. Shah referred us to some of the documents on record to submit that the respondents’ consent c
The court upheld the transfer order under Section 127(2) of the Income Tax Act, confirming its reasoned nature and the existence of agreement between jurisdictional Commissioners.
The court upheld the validity of an administrative order transferring a tax case based on existing connections to other investigated parties, concluding that sufficient opportunity and reason for the....
The court upheld the transfer of income tax assessment cases under Section 127 for coordinated investigation, affirming the necessity of administrative convenience and adherence to natural justice pr....
The court reaffirmed the necessity of natural justice in administrative decision-making, stressing the need for consideration of a party's objections prior to adverse decisions.
The court upheld the transfer of the petitioner's case under the Income Tax Act, confirming compliance with natural justice principles and justifying the transfer based on suspicious cash transaction....
The court established that the requirement of a hearing before transferring cases under Section 127 of the Income Tax Act is fundamental to ensuring natural justice.
Transfer orders under Section 127 of the Income Tax Act must comply with principles of natural justice, including providing an opportunity for the assessee to be heard.
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